Bryce may take business elsewhere

TROY -- David Bryce, a prominent developer who owns several buildings downtown, will likely take his business out of the city due to the actions of the City Council.

Faced with legislation to sell the Uncle Sam Parking Garage to the developer for $2.15 million, the council voted 4-4 Tuesday, with one abstention, essentially defeating the proposal, according to city officials.

Before the vote, Councilman Ken Zalewski, D-District 5, who abstained from voting because he was not ready to make a decision on the matter, asked Bryce what would happen if the sale did not go through.

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"I'm leaving," said Bryce.

The developer has leased the 514-car facility since 2001 and, in his proposal to purchase the garage, planned to add a third deck with 150 new spots for a tenant he hoped to bring into the Quackenbush Building, which he also planned to renovate once the sale of the garage was complete.

"I've got Pittsfield that's just crazy to help me, and then you guys," he said. "I've got Green Island that's bending over backwards, with people in the town saying 'Come here! Come here!' and then I've got you guys."

Mayor Harry Tutunjian called the legislative body together for a special meeting to vote on the matter after it had been tabled and pulled from council agendas on several prior occasions by the council's Democratic majority.

The mayor had intended to use revenue from the sale to cover the $2 million local match required to for $6 million in state funding for development projects in the city, including the development of the Monument Square city hall site, which was allocated in 2008 by then-Senate Majority Leader Joseph L. Bruno.

The city used $500,000 from the city's capital reserves in January to cover a portion of that match, but an additional $1.5 million is still required.

The city could use remaining reserve monies, nearly draining its account, or could attempt to bond the money at the additional cost of interest rates. Both options would require council approval to go forward.

Councilman Bill Dunne, D-District 4, said that the sale was the right thing to do for the city in order to secure funding for the development of the city's greatest resource - its waterfront.

"This isn't a loss. It's a win for every person in the City of Troy, because we can get that waterfront development rolling, and that's the future of this city," said Dunne. "That's the long term benefit. That's why I'm in favor of doing this."

Tutunjian said he would ask Bryce whether he would have any interest in reviving the deal but was not pleased with the council's actions. He also noted that the city has tried to portray itself as friendly and attractive to business and investors.

"Tonight was the total opposite of that," said Tutunjian.

Under his current 10-year lease, which is in effect until 2011, Bryce pays the city $218,730 per year and has the option to extend the lease for two additional five-year periods, without any say by Tutunjian's administration.

The city is responsible for major repairs to the structure as well as distributing parking permits and collecting fees, but turns over those profits to Bryce.

According to Bryce, the garage is currently in need of an estimated $150,000 in repairs

Zalewski said that he initially was against selling the garage because he felt it was undervalued, but had been trying to determine the tangible benefits of selling it. He did not consider the waterfront development as currently tangible since it is still in the planning stage and there is no guarantee what will come of it or when such development will begin.

Additionally, Bryce also indicated during an earlier meeting that if the city did not award him the parking garage, the River Street Holding Co., made up of partners including himself and Cornerstone Telephone CEO Dan Yamin, would not be interested in purchasing the Dauchy and River Triangle buildings, a sale that was expected to result in more than 100 new jobs in Troy.

Those buildings are currently the subject of pending litigation between the city and their owner, the River Triangle Company.